Water supply, sanitation bill fails

PARLIAMENT fell short by one vote yesterday to pass the Water Supply and Sanitation Bill 2016 to fully commercialise Water PNG.
If passed, the legislation would have made the state-owned water utility forego its current community service obligation in 19 towns to be a full profit-making entity.
However, Parliament voted   55-7 after Sinasina-Yongomugl MP Kerenga Kua strongly opposed the Bill to be read the third and final time before it became an Act.
The Bill needed 56 votes or more to be enacted.
Leader of Government Business James Marape then asked the Parliament to rescind the vote and for the Bill to be read the third time.
Kua had argued that the proposed law would increase water rates, which would affect consumers, many of whom were ordinary citizens. He urged Parliament to think carefully before voting for the third reading.
Kua also urged that the Bill be reviewed before it could be reintroduced.
Opposition Leader Don Polye expressed similar concern, saying that water from the public fire hydrant used by PNG Fire Services would be affected.
Public Enterprises and State Investment Minister William Duma had presented the Bill to restructure and fully commercialise Water PNG.
“Currently, the Water Board is operating as a statutory authority mandated by its existing legislation to perform a dual function as a regulator and provider of water supply and sanitation services in the country.
“Given the nature of its existence, the core objective has been focused on community services obligations and less of commercial operation and profitability.”
“This has posed real challenges in the commercial operation, policy and legislative platform of the entity to be able to operate as a fully commercial enterprise as envisioned under the Kumul Agenda.
“As a result of the current arrangement, only four of the 19 business centres across the country make profit to cross-subside 15 loss making centers.
This cycle has been ongoing without any improvement due to the excessive community service obligation imposed with less return on investment or State subsidy.
“The Bill also intends to harmonise with the Kumul Consolidated Holdings Act 2015 and the Companies Act 1997 and move away from the Public Finance (Management) Act.”